100% Mortgages – should I get one?

With 100% mortgages, you borrow the entire value of the home you want to buy – rather than having to save the minimum 5% deposit up-front.

• So, if the property you want to buy is valued at £200,000, you would borrow the full £200,000 from the lender and not pay any deposit.

What’s changed with 100% mortgages?

Before 2008’s financial crash, 100% mortgages were common and some lenders offered more than the property was worth, up to 125% LTV. However, some people who took out these mortgages are still trapped in their homes which they cannot sell because they have fallen into negative equity.

And in the tightening of lending following the crash, 100% mortgages disappeared, with the exception of guarantor mortgages.

However, this has since changed: In 2023, Skipton Building Society launched a 100% LTV mortgage for people with a track record of renting. The lender later launched a shared ownership version of this mortgage.

And in May 2025, the Dutch owned April mortgages launched a 100% mortgage for people prepared to fix their rate for 10 or 15 years. Read on for more details on these.

To see if the 100% mortgage is right for you, get free expert advice from award-winning mortgage brokers L&C. They will help arrange the best mortgage for you.

How do 100% mortgages work?

With a 100% mortgage, you borrow the full value of the property and don’t need a deposit. However, the 100% mortgages currently available work differently depending on which deal you take out.

Skipton 100% mortgage

Skipton Building Society’s 100% LTV Track Record Mortgage is designed to help renters buy a property without needing a deposit if they have a proven track record of paying rent.

The Skipton 100% mortgage is available as a 5 year fixed rate mortgage at 5.37% and available at 95%-100% LTV. This means you can take it out with up to a 5% deposit. But there are some strict criteria to meet including:

• You haven’t owned property in the UK in the last 3 years.
• Each applicant must have no missed payments in the last 6 months
• Each applicant must be aged 21 or over.
• Wanting to borrow up to £600,000
• Can’t be buying property in Northern Ireland

Additional criteria to meet

The Track Record Mortgage was originally designed for first time buyers but the criteria was later changed and people who haven’t owned a property in the UK in the last 3 years can now also apply.

In September 2024, more changes were made including allowing Track Record mortgages on new build flats and increasing the maximum mortgage term from 35 to 40 years. The lender has also launched a 100% Shared Ownership Track Record mortgage – click here to jump to more details on this.

April’s 100% mortgage

In May 2025, mortgage lender April launched a 100% mortgage. It’s set up differently to the Skipton offer and while it doesn’t require a history of renting, it does require borrowers to fix their interest rate, starting at 5.99%, for 10 or 15 years.

• This mortgage is available to first time buyers and house movers with a household income of at least £24,000.
• You’ll automatically get switched to a better rate over time if you drop into a lower LTV band.
• You won’t need to pay an early repayment charge if you move house, make overpayments or pay the mortgage off with your own funds. But if you remortgage, you’ll be stung by an early repayment charge starting at 9% in the first 2 years of the 10 year fixed deal and the first 7 years of its 15 year fixed rate deal.
• This mortgage comes with a non-refundable Application Fee of £195 and Completion Fee of £995 which can be paid up front or added to your mortgage balance.
• This mortgage is available on houses only, with a value between £75,000 and £2m, or £2.5m in Greater London.

If you’re considering taking out one of these 100% mortgages, make sure you get expert advice first. Speak to award-winning fee-free mortgage brokers L&C who will be able to help you.

How much can I borrow?

• Skipton’s 100% mortgages have a maximum loan size of £600,000. And its maximum loan to income ratio is 4.49. However, this increases to 4.75 for incomes greater than £50,000. When deciding how much it will lend, Skipton will consider how much your mortgage repayments would be vs the rent you’ve been paying. It says ‘in some circumstances we will lend loans which have monthly payments up to 120% of the rent the customer is currently paying’.
• April’s 100% mortgage also has a maximum loan size of £600,000 and the maximum loan to income ratio is 4.49.

100% mortgages calculator

An easy way to see how much your repayments will be if you take out a 100% mortgage is to use an online mortgage calculator.

“Borrowers will need to evidence their ability to meet mortgage payments. In addition, they should think about the higher potential for negative equity if property prices were to fall. 

“Negative equity becomes a problem for those that need to sell, crystallising any loss. The stability of a fixed rate will provide shelter from fluctuating interest rates, which could help them ride out a dip in prices.”

You can buy a house sooner

The main advantage of 100% mortgages is that you can buy a house without needing to save a deposit first. Buying a home has become increasingly difficult: research by Skipton Building Society found eight in 10 tenants feel ‘trapped’ in the rental cycle. So taking out a 100% mortgage could mean getting on the property ladder sooner.

You’ll start building up equity

The sooner you buy a house and start paying off your mortgage, the sooner you’ll build equity in the property, assuming it doesn’t drop in value. If you take out Skipton’s 100% mortgage, you’ll then hopefully be able to remortgage onto a better deal once your fixed deal ends. While with April’s 100% mortgage, you’ll get automatically switched onto better rates as you build equity in your home and your loan to value improves.

Use this handy calculator to see what your LTV is

You’ll get flexibility

The April 100% mortgage allows you to make unlimited overpayments and move house within your term without needing to pay an early repayment charge.

Find out if a 100% mortgage is right for you by speaking to fee-free mortgage brokers L&C. They’ll help you find the best mortgage for you.

Disadvantages of 100% mortgages

But there are some potential pitfalls. So if you’re asking ‘Can I buy a house without a deposit in the UK?’ and think 100% mortgages are the answer, you should consider the pros and cons carefully first.

1. Higher mortgage rates

100% mortgages are a higher risk to the lender so rates are higher than if you can save at least a 5% deposit.

5 year fixed rate mortgages: 100% LTV vs 95% LTV

• For example, in May 2025, Skipton Building Society’s 100% 5 year fixed rate Track Record Mortgage rate is 5.37%.
• By contrast, if you have a 5% deposit, Nationwide offers a 5 year fixed rate of 4.83%. Both these deals have no arrangement fees.

10 year fixed rate mortgages 100% vs 95% LTV

• While April’s 10 year fixed rate mortgage is available at 5.99%. (Plus application fee of £195 + completion fee of £995.)
• By comparison, if you have a 5% deposit, Virgin Money offers a 10 year fixed rate mortgage at 5.29%, with no arrangement fees.

Also, while April says your mortgage rate will go down as your LTV improves, you may still pay more than you could get elsewhere. For example, if your loan to value is 95%, April currently offers a rate of 5.90%, which is higher than Virgin Money’s rate of 5.29% for a 95% mortgage on a 10 year fix.

2. Increased risk of negative equity

If you take out a 100% mortgage, you’re more likely to fall into negative equity – this is when the market value of your property is less than the mortgage you have secured on it.

• So if you take out a 100% mortgage to buy a property for £200,000 and its value drops to £190,000 you would still owe your lender £200,000, (minus the amount of capital you have already paid off).

However, the longer you’ve been paying your mortgage for, the more equity in it you will own (assuming your house’s value doesn’t fall drastically).

The length of Skipton and April’s deals aim to reduce the risk of negative equity. But to cut the risk of negative equity further, it’s a good idea to make overpayments on your mortgage if possible. Find out more in our guide What can I do about negative equity?

KEY INFORMATION

Beware of negative equity and new builds

Your risk of falling into negative equity may be greater if you buy a new build home. This is because new build homes often dip in value in the early years after moving in. This is why lenders often require a bigger deposit for new build mortgages and you may need an even bigger deposit if you’re buying a new build flat than a new build house.

So think carefully before taking out a 100% mortgage on a new build property.

3. Will you be able to remortgage?

When Skipton launched its 100% mortgage, the idea was that in theory that at the end of the 5 year term you should have enough equity to remortgage onto a cheaper deal.

• For example, if you take out £200,000 over 35 years at 5.37%, at the end of the 5 year term you would owe around £188,866.
• If your property’s value remains the same you would have the £10,000 equity required to get a 95% mortgage (although without much wiggle room). And if your home’s value increases you may be able to get an even lower LTV mortgage.

However, if your house falls in value you’ll have less equity, plus you may need to pay remortgage fees also, noone knows how common 95% LTV mortgages will be in 5 years’ time.

But now that the lender is offering a maximum term of 40 years, if you take out a mortgage for this length of time, it’s a different picture:

• For example, if you take out £200,000 over 40 years at 5.37%, after 5 years you would still owe around £191,829. You wouldn’t have the £10,000 in equity to be able to get a 95% mortgage at the end of the term unless your home increases in value or you’ve saved the cash.

So you will need your home to increase in value over the mortgage term in order to remortgage. However, as the term is 5 years that gives a decent amount of time for that to hopefully happen.

4. High early repayment charges

Tying into a longer term deal can mean facing high early repayment charges.

• For example, April’s early repayment charges start at 9% if you end your deal early to remortgage with a different lender. If you need to pay a 9% early repayment charge on a mortgage of £200,000, this would be £18,000.
• While Skipton’s early repayment charges start at 6%.

To see if the 100% mortgage is right for you, get free expert advice from award-winning mortgage brokers L&C. They will help you find the best mortgage for you.

How do I find the best mortgage lender?

Here at the HomeOwners Alliance, we have compiled the best mortgage lenders, based on how competitive their mortgage rates have been in recent months, as well as the size of the lender based on figures from UK Finance, and popularity with our readers.

Skipton Building Society, which offers a 100% mortgage, is on our current list of the best mortgage lenders. Find more in our guide to the best mortgage lenders. However, our reviews are our opinion and do not constitute advice, recommendation or suitability for your financial circumstances. To get tailored advice, speak to an expert mortgage broker.

100% mortgage for shared ownership

Skipton Building Society launched a 100% Shared Ownership Track Record mortgage in 2024. This is a 5 year fixed rate mortgage but comes with a higher rate, currently 5.62%.

At HomeOwners Alliance, while we appreciate this mortgage may help people buy a home, think carefully before proceeding:

• Firstly, Shared Ownership is a complicated scheme so make sure you’re fully aware of the potential pitfalls first. There are also lots of costs further down the line if you want to staircase, which means buying a bigger share of your home. Read our guide What is Shared Ownership? Is it worth it?
• Also, if you’re struggling to get together a deposit on a share of a house, consider carefully whether you can afford to buy a house. There are many costs you’ll need to shoulder, such as if your washing machine breaks down. So make sure you’re not stretching yourself too far.

How do I apply for 100% mortgages in the UK?

The easiest way to apply for a 100 per cent mortgage in the UK is by speaking to a fee-free mortgage broker. They’ll be able to advise you on whether you meet the lender’s criteria for 100% mortgages and also if any more suitable products are available.

To see if the 100% mortgage is right for you, get free expert advice from the award-winning mortgage brokers at L&C. They will help you find the best mortgage for you.

What are the benefits of putting down a deposit?

When thinking about how much deposit you need to buy a house, you will typically need a minimum 5% deposit. If you can save up for a 5% deposit or more, you will have a greater choice of lenders and may be able to access cheaper rates too. But if this isn’t possible, it’s still worth saving as much of a deposit when taking out a 100% mortgage as possible. Even by putting in 3% you will at least have a small amount of equity in your home that you can build on.

How can I save a deposit?

Saving for a house deposit seem like an impossible task? Then make sure you get all the help you can.

• Lifetime ISA: If you’re aged 18-39 you can open a Lifetime ISA, this is a savings account designed to encourage people to save for their first home or retirement. You can save up to £4,000 each tax year into your LISA and the government will give you a 25% bonus on your contributions, up to a maximum of £1,000 per year. Read our Best Lifetime ISA guide for more information.
• Bank of Mum and Dad: If you can get financial help from your parents or grandparents this could make getting enough cash together for a deposit much easier. They may be able to assist with a gifted deposit. Read Bank of Mum and Dad: How to help your child buy a house for more information.
• Budget and slash spending: If you’re saving for a deposit, go through your finances and make a budget and save what you can each month. Having good control of your finances will also demonstrate to lenders that you are careful with your cash. For more tips read our guide on How to save for a deposit

Does my credit rating matter when getting 100% mortgages?

Yes. Whenever you apply for a mortgage, the lender will look at your credit rating and the better it is, the more likely it is that you will be accepted by a lender. Plus, you may be able to borrow more and at better rates too.

• In the case of Skipton’s Track Record mortgage, they will check your credit score and they have also specified they need to see that applicants haven’t missed any payments in the last 6 months as one of its lending criteria.

Are 100% mortgages a good idea?

Whether 100% mortgages are a good idea for you will depend entirely on your circumstances. If you can comfortably afford the repayments and can ideally make overpayments on your mortgage you may feel it’s the ideal way to get on the property ladder. Plus you may feel that even if house prices do drop in the near future that they will have recovered by five years’ time. It is best to get advice tailored to your circumstances from a fee-free mortgage broker – speak to the award-winning mortgage brokers at L&C today.

Can I afford a mortgage?

An important first step is to work out how much you can afford to borrow on a mortgage, this will depend on things like how much you earn and your outgoings. Find out more in our guide How much mortgage can I afford to borrow?

Use our calculators to see how much you can afford, how much the mortgage will cost you monthly and more.

Are there any no deposit mortgage government schemes?

No. There aren’t any no deposit mortgage government schemes. You may have heard of the ‘mortgage guarantee scheme’ however this isn’t something you specifically apply for – its purpose is to stimulate lenders to offer 95% LTV deals. But it’s worth noting that many lenders don’t rely on the scheme for their 95% deals.

What are the other types of 100% mortgages?

There are other types of no deposit mortgages that work in a different way.

• Guarantor mortgages: This is when a loved one, usually a parent, takes on some of the mortgage’s risk by acting as a guarantor. This usually means them offering their savings or their home as security against the loan and committing to making the mortgage payments if the borrower defaults. For more information read our guide on Guarantor mortgages explained.
• Family offset mortgages: These work in a similar way to guarantor mortgages that use savings as security. Although the main difference is that your loved one won’t earn interest on their savings. But on the flip side, as it’s an offset mortgage, you will only pay interest on the difference between the total value of the mortgage and the value of the savings held in the linked savings account.

Get fee-free advice from award-winning mortgage brokers L&C and start the process online now or over the phone.

What are the alternatives to 100% mortgages in the UK?

If you can’t afford to save a 5% deposit, what are the alternatives to 100% mortgages in the UK? A couple of options include:

• Rent to Buy: Rent to Buy lets you to rent a home at approximately 20% below the market rent, allowing you to save for a deposit to put towards your first home. Read our guide on Rent to Buy for more information.
• First Homes: The government’s First Homes scheme works by offering newly built homes to local first time buyers, including keyworkers, with a discount of at least 30% compared to the market value of equivalent properties. This means you’ll need a smaller mortgage and smaller deposit. But the eligibility criteria is different for different local authority areas and the number of First Homes being built is extremely limited. Read more in our guide to the First Homes Scheme

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